The Loney Letter

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WATCH: This month Dan chats with Bernard Letendre, President of Manulife Investments
and finds out his views on the biggest challenges for investors in the next decade.

This past week, I was in meetings in Toronto as I sit on the Manulife Investment Advisory Board. Manulife in Canada manages over $1Billion in Canadians money and this does not include the many billions in the United States and Asia.

These days, if you are going to steer an aircraft carrier in the financial industry like Manulife, you need to spend enormous amounts of money on data and information so that you can stay ahead and to be well prepared for the changes that are happening in the industry and the world economy. Be sure to watch the video this month as I interview Bernard Letendre, the President of Manulife Investments, who very frankly states the challenges for investors in this next decade.

In response, Manulife have exciting products in development to meet these challenges and, being sworn to secrecy, you will have to stay tuned for future product releases and announcements.

Last months winner for Guess Where? Harry Che who guessed correctly with: Alcatraz.

B.C. budget: Tax hike for wealthy, more money for education.
50 per cent reduction to MSP payments; missing promises: $400 renter's rebate, freeze on ferry and hydro rates

B.C.'s new. government will spend $51.9 billion for this fiscal year to support the NDP'S stated goal of making the province more affordable for residents.

It's a balanced budget but nearly $2 billion more than the B.C. Liberals planned to spend in their February budget.

"It's a budget that puts people first," said B.C. Finance Minister Carole James who began her presentation from Victoria on Monday by talking about being raised by her grandparents, who were extremely careful with their money; every dollar was spent with purpose.

The plan rides a hot economy and relies on higher than expected surpluses to pay for policies and programs.

They include the construction of new affordable rental housing, modular housing for homeless people, a 50 per cent cut in MSP premiums and an increase of $100 per month for people on income and disability assistance.

It's spending James described as, "long overdue."

There is also money for education, improved home and residential care, new funding for the Residential Tenancy Branch, the fentanyl crisis and wildfire suppression.

The province will also reduce MSP premiums by 50 per cent, something the Liberals had promised to do. However the NDP says there will be no need to apply for the reduction.

WHAT'S MISSING

Despite all the spending, missing from the budget is money to provide a $400 renters rebate, a freeze on B.C. ferry fares and BC Hydro rates — all things that were prominent in the NDP's campaign platform.

"I'll acknowledge that we didn't have time to make all the commitments we made," she said referring to the 52 days it took for her government to take office after election night.

"You can't turn back the clock on 16 years overnight. I understand peoples' impatience."

She says work is being done to include these unmet priorities in the full budget in February.

There is also no new money for the embattled Ministry of Children and Family Development, just the $312 million over three years the Liberals earmarked

"The message there is, it's a start," said James.

NEW TAXES

Higher earners and corporations will pay more tax to help pay for expenditures.

People earning more than $150,000 a year will now face a personal income tax rate of 16.8 per cent up from 14.7 per cent.

The NDP will also increase the general corporate income tax to 12 per cent up from 11 per cent.

"These are commitments that we made during the elections and commitments we have built into this budget," said James. 'This is the top two per cent of income earners."

The province will also increase the carbon tax rate — a tax used to reduce greenhouse gases in B.C. — by $5 per tonne of carbon dioxide equivalent emissions.

It will also eliminate the requirement for the carbon tax to be revenue neutral.

James says her government will use revenue generated from the changes to the carbon tax to help residents, families pay for green initiatives such as home retrofits or green transportation.

REVENUES

Aiding the NDP in its spending plans is an economy that is performing better that expected and higher than expected revenue.

The 2017/2018 budget is forecasting more than more than $300 million in property transfer tax, also nearly $900 million in corporate income tax.

"Over the three year fiscal plan period, revenues are forecast to be $4.6 billion higher than the February estimates," said documents provided by the Ministry of Finance.

James is predicting balanced budgets up to 2020.

She says for the first time since the 70s, there will be no operating debt by the 2019/2020 budget as a result of surpluses — including $2.8 billion from 2016/2017 alone.

While her government will spend $51.9 billion in this fiscal year, revenues are pegged at $52.4 billion.

James' ministry has also worked in contingency money to deal with unknown costs due to wildfires but also the softwood lumber dispute, the renegotiation of NAFTA, the tightening of Canadian monetary policy and rising interest rates.

However, Budget 2017 forecasts greater growth to the province's GDP than did the LIberals in February — 3.6 per cent for 2016 as opposed to the Liberal forecast of three per cent and 2.9 per cent for 2017, as opposed to the Liberals' 2.1 per cent.

http://www.cbc.ca/news/canada/british-columbia/2017-bc-budget-update-1.4284778

NDP abandons 2021 deadline to reach $15 minimum wage

The B.C. NDP government has altered an election promise to implement a $15 minimum wage by 2021, and will instead give an independent review panel free rein to suggest a new, possibly longer, timeline.

Labour Minister Harry Bains said he agrees with criticism from Green party Leader Andrew Weaver that mandating the review panel to a 2021 timeline is too restrictive and locks in the outcome.

So Bains said he’ll remove the deadline when he announces details of his Fair Wages Commission in the next few weeks.

“I think Mr. Weaver made a pretty good point,” Bains said in an interview. “We’re going to work with him. He’s saying that we should not be prescriptive of the fair wages commission and I agree with him. I think we should give them the authority and mandate to decide when we reach $15, and how we reach $15.”

The new timeline could be “anything they come back with,” he said. But the overarching goal will remain getting to a $15 an hour minimum wage eventually, added Bains.

“That part is agreed to,” he said. “Fifteen (dollars an hour) is where we need to get to and we will ask the panel to come back with how we reach there and when we reach there.”

The removal of the timeline alters a promise the NDP campaigned upon in the May provincial election.

“John Horgan and the B.C. NDP will bring in a $15/hour minimum wage by 2021, with increases each year,” read the NDP platform. “Phasing in the increases will allow businesses to adjust, ensuring that jobs aren’t at risk and that employment in minimum wage sectors actually increases, as has been the case in Seattle. Once we reach $15/hour, we will index the minimum wage to inflation to ensure that we don’t fall behind.”

But after the Liberal party won a minority of seats on election night, the NDP and Greens signed a power-sharing deal that stipulated an independent Fair Wages Commission tasked with recommending the path to $15 an hour. Once he became minister, Bains told the media his plan was to stick to the 2021 timeline, even though it wasn’t written into the Green deal, provoking criticism from Weaver.

Weaver said in a statement Thursday he’s “very pleased” Bains has changed his mind.

“Empowering the commission to determine how and when the minimum wage is increased is absolutely crucial to depoliticizing the setting of minimum wage in B.C.” said Weaver.

“We need to ensure that minimum wage is set according to the best available evidence and in consultation with affected stakeholders, so that we can find the best path forward to enhancing income security for all British Columbians.”

Liberal critic John Martin said the NDP is back-peddling and stumbling through the issue.

“They are finding out that the easy nice quick rhetoric of throwing a date and number out there is actually quite a bit more complex than that,” he said. B.C. Restaurant and Food Services Association CEO Ian Tostenson, who has warned jobs could be lost and businesses closed if the minimum wage is raised too quickly, said he was pleased at Bains’ comments.

“It’s a good sign for the government to say lets have some flexibility on how we get there,” said Tostenson. “They could say we want to get there by next year, but that would be foolish. I think they really truly want to have a process where they can work with industry.”

http://vancouversun.com/news/politics/ndp-abandons-2021-deadline-to-reach-15-minimum-wage

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WATCH: Manulife One - Live More Freely
A MORTGAGE DONE DIFFERENTLY

In Psyched Up, journalist Daniel McGinn dives into the latest psychological research and interviews athletes, soldiers, entertainers, and others who, despite years of practice and enviable track records, will ultimately be judged on their ability to delivera solid performance when it’s their turn to shine.

For instance, he reveals…

• How Jerry Seinfeld’s jacket and Stephen Colbert’s pen help them get laughs.

• What General Stanley McChrystal said to Special Forces before they entered the battlefield.

• Why the New England Patriots hired the DJ from the Red Sox to help them win.

Whether you’re a sportsperson or a salesperson, an actor or an entrepreneur, one bad hour can throw away months of hard work. There’s so much conflicting popular advice that we often end up doing the wrong things.

McGinn separates the facts from the old wives’ tales and shares new, research driven strategies for activating your talent, optimizing your emotions, and getting psyched up to take the spotlight.

Click here to see the story of a 35 year dream come true and learn about Loney Financial’s support of rescuing homeless children in Guatemala. Thank you to all the clients and associates that have helped to make this a reality.